Commerce.com Q3 Revenue Falls 2% as GMV Rises 14%

Commerce.com, Inc. (NASDAQ: CMRC) reported lower third-quarter revenue and a wider GAAP net loss, while gross merchandise volume rose 14% and non-GAAP operating profitability remained broadly stable. The company expects full-year 2026 revenue to decline about 1% at the midpoint of its guidance range, alongside a non-GAAP operating margin of 10% to 11%.

Revenue for the three months ended September 30, 2026, fell 2% to $84.2 million from $86.0 million a year earlier. Annual revenue run-rate, or ARR, was $358 million, up 1% year over year but below $361 million in the second quarter.

GMV processed through the Commerce platform increased 14% to $9.0 billion from $7.9 billion. GMV represents the gross value of completed checkout transactions, including shipping and taxes, and is not a measure of company revenue.

Margins hold despite lower gross profit

GAAP gross profit decreased to $62.4 million from $67.4 million as cost of revenue rose to $21.9 million from $18.6 million. On a non-GAAP basis, gross margin narrowed to 74.5% from 79.1%.

Non-GAAP operating income was nearly unchanged at $8.0 million, while non-GAAP operating margin edged up to 9.5% from 9.3%. Lower sales and marketing expense helped offset increased research and development and general and administrative costs. Non-GAAP sales and marketing expense declined to $24.9 million from $34.6 million, while non-GAAP R&D expense rose to $18.1 million from $15.4 million.

The GAAP operating loss widened to $1.8 million from $435,000, reflecting $4.0 million of restructuring charges compared with $83,000 a year earlier. The net loss increased to $3.2 million from $2.2 million. Excluding specified items, non-GAAP net income rose to $6.6 million from $6.2 million, and adjusted EBITDA increased to $9.9 million from $8.8 million.

Operating cash flow was $9.4 million, down from $10.6 million in the prior-year quarter. Commerce ended September with $92.5 million in cash and cash equivalents and $69.1 million in marketable securities.

Commerce focuses on AI-enabled product discovery

Commerce is positioning its BigCommerce, Feedonomics and Makeswift products as an integrated stack spanning commerce infrastructure, product-data management and storefront design. Management emphasized capabilities intended to help merchants distribute structured product information across traditional marketplaces and AI-driven discovery services, while retaining control over storefront experiences and transactions.

The company said its API-centric architecture is designed to support agentic search and checkout, including the use of Model Context Protocols, pricing logic and real-time decision-making. It is also expanding self-service adoption through BigCommerce Payments and plans to launch an additional freemium and self-service motion in early 2027.

Fourth-quarter and full-year outlook

Commerce forecast fourth-quarter revenue of $83.4 million to $86.4 million, representing a 5% year-over-year decline at the midpoint. It expects quarterly non-GAAP operating income of $6.8 million to $8.8 million and a non-GAAP operating margin of 8% to 10%.

For full-year 2026, the company expects revenue of $339.0 million to $342.0 million, down 1% at the midpoint. Non-GAAP operating income is projected at $35.3 million to $37.3 million, with a margin of 10% to 11%.

Commerce identified customer acquisition, renewals and upgrades as important uncertainties. Other disclosed risks include intense competition, the possibility that revenue growth may not be sustained, platform or third-party service disruptions, cybersecurity incidents, and execution challenges related to its rebranding and increased focus on AI enablement.